BOI Enforcement Again Halted

On Thursday December 26, 2024 the Fifth Circuit Court of Appeals reinstated a lower court’s halt on the enforcement of Beneficial Ownership Information (BOI) reporting. This latest ruling, which reverses the order for the same court earlier in the week, was made to “preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments.”

The Financial Crimes Enforcement Network (FinCEN) issued an updated alert on its BOI information page stating that companies can continue to voluntarily submit BOI reports while enforcement is halted, but reporting companies are not subject to liability if they fail to report while this most recent order remains in force.

While the current ruling applies to reporting companies nationwide, the CTA has not been eliminated. Reporting companies should continue to gather information about their beneficial owners and be prepared to file their BOI reports if enforcement again resumes.